Greece’s government announced a referendum on Sunday and shut down its banking system to help it try and resolve the five year long debt crisis the country has faced. The effects of this are still uncertain. Many are predicting Greece will finally leave the Eurozone and others are saying this will challenge the ability for the Euro to remain a common currency throughout the European Union. If Greece does exit the Union then there is a fear of their exit having a cascade effect on other weak countries such as Spain, Portugal and Italy. The announcement from the Greek government sent shockwaves through the global economy causing all the markets to open lower than they closed the day before.
Many are concerned over what effects a Greek exit from the Eurozone will have and the damage it could cause to the global economy. Despite this uncertainty causing a decrease in the value of stock markets around the world there are still stable investments out there. One of the most stable investments available right now is oil. As such, Southern Energy Group, Inc. (SEG) has continued to expand their oil well holdings. They acquired a 20% stake in the AJ Carter, NJ Carter and Warnicke-Joslin Leases located in Guadalupe County, Texas. A geological engineering company, Geologic, evaluated the leases and announced the potential for oil production is considerable.
They are saying the multi-well re-stimulation of the 45 wells in several reservoirs will eventually lead to approximately 3,935,000 BO. This is a lot of oil and this is just one of many leases acquired by Southern Energy Group recently. While the stock markets around the world are shifting and struggling, the reality on the ground is people everywhere are gaining access to new standards of living, particularly in Africa and Asia. As this continues the demand for energy will rise and the value of resources such as oil and natural gas will rise along with the demand.
Fortunately, for many investors the cost of investing in domestic oil wells right now is very low due to the recent advances in technology which have yielded us with fracking. This has provided America with a glut in available oil, but the current surplus of oil will not last indefinitely. If you’re looking for an investment that will grow over time and provide you with solid returns in the future when you’re considering retirement then domestic oil is one of the safest bets. Investing in domestic oil is also has better tax benefits than many other investments which means less of your money is being siphoned off by the government.